Legislature(2011 - 2012)BARNES 124

02/17/2012 01:00 PM House RESOURCES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HJR 29 BLM LEGACY OIL WELL CLEAN UP TELECONFERENCED
Moved Out of Committee
+= HB 276 OIL/GAS PRODUCTION TAX CREDITS: NENANA TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 229 BIG GAME COMMERCIAL SERVICES BOARD TELECONFERENCED
Moved CSHB 229(RES) Out of Committee
              HJR 29-BLM LEGACY OIL WELL CLEAN UP                                                                           
                                                                                                                                
1:06:18 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE  announced that the  first order of  business would                                                              
be  HOUSE  JOINT  RESOLUTION  NO. 29,  Urging  the  United  States                                                              
Department  of the Interior,  Bureau of  Land Management,  to plug                                                              
legacy  wells properly  and to reclaim  the legacy  well sites  as                                                              
soon  as possible  in  order to  protect  the  environment in  the                                                              
Arctic region.                                                                                                                  
                                                                                                                                
1:07:08 PM                                                                                                                    
                                                                                                                                
JEFF  TURNER,  Staff,  Representative   Charisse  Millett,  Alaska                                                              
State  Legislature, on  behalf  of Representative  Millett,  prime                                                              
sponsor, thanked  the committee for  taking up HJR 29  once again.                                                              
He said  the resolution urges the  U.S. Bureau of  Land Management                                                              
(BLM) to  create a long-term  plan to properly  plug and  clean up                                                              
the legacy  well sites in northern  Alaska.  The  drilling stopped                                                              
three  decades  ago  and  only  a  few  wells  have  been  plugged                                                              
according to  Alaska Oil and  Gas Conservation Commission  (AOGCC)                                                              
standards.   Dozens  are  still  out of  compliance  and at  least                                                              
three  can  no  longer  be  found.    Now  is  the  time  for  the                                                              
legislature  to make  its voice  heard in Washington,  DC,  and to                                                              
get  these wells  cleaned  up before  any  more contamination  can                                                              
take place.   He  said word  about the  resolution has  gotten out                                                              
and   the  sponsor   has  now   heard   from  some   environmental                                                              
organizations  and  Native  communities  about  the  issue.    The                                                              
Alaska  Conservation  Alliance board  of  directors  has issued  a                                                              
letter of  support for HJR 29  and several Native  communities are                                                              
in favor  of the resolution.   In a  sense, the resolution  speaks                                                              
for the legislature as well as for Alaskans across the board.                                                                   
                                                                                                                                
REPRESENTATIVE  HERRON asked  whether the  federal government  has                                                              
acknowledged that this is its fault and is sorry it happened.                                                                   
                                                                                                                                
MR. TURNER  replied that Representative  Millett has  not received                                                              
any  comment   from  the   federal  government   in  response   to                                                              
Representative Herron's request.                                                                                                
                                                                                                                                
1:10:20 PM                                                                                                                    
                                                                                                                                
ESTHER HUGO,  Mayor, Anaktuvuk  Pass, testified  that the  area in                                                              
which she lives  has six or seven of the contaminated  well sites,                                                              
including Umiat.   A  road is not  needed to  clean up  the sites,                                                              
she  said.    The  community  has   forbidden  its  children  from                                                              
swimming in Eleanor  Lake near the village, which  is contaminated                                                              
according to  a 2009 letter from  the U.S. Department  of Defense.                                                              
However,  when it  is hot  in the  summer the  children cannot  be                                                              
stopped  from swimming  in the  lake.   The resolution  is a  good                                                              
start, she  said, because  the federal  and state governments  and                                                              
the  corporations  should be  held  responsible for  cleaning  up.                                                              
She  reported that  there  are dozens  of  similar  well sites  on                                                              
state land  in the North  Slope.  She  further noted that  she was                                                              
first told about this problem by her grandparents.                                                                              
                                                                                                                                
MAYOR HUGO,  in response to Co-Chair  Seaton, agreed to  provide a                                                              
copy of  the letter from  the U.S. Department  of Defense  for the                                                              
committee record.                                                                                                               
                                                                                                                                
CO-CHAIR FEIGE  requested that any  allegations of wells  on state                                                              
land needing cleanup be forwarded in writing to the committee.                                                                  
                                                                                                                                
MAYOR HUGO agreed to do so.                                                                                                     
                                                                                                                                
1:13:21 PM                                                                                                                    
                                                                                                                                
GEORGE  EDWARDSON,  President,  Inupiat Community  of  the  Arctic                                                              
Slope,  noted that  he is  speaking for  the tribes  of the  eight                                                              
North  Slope Communities  of  Kaktovik, Nuiqsut,  Anaktuvuk  Pass,                                                              
Atqasuk, Barrow, Wainwright,  Point Lay, and Point Hope.   He said                                                              
he  is in  his  twenty-third year  as  president  of the  regional                                                              
tribal government.   Regarding  the legacy wells,  he said  he was                                                              
with  the   [Barrow]  Restoration   Advisory  Board   (RAB)  which                                                              
included  the  U.S.  Air  Force  and  Navy,  U.S.  Army  Corps  of                                                              
Engineers, BLM, and  State of Alaska.  He related  that of all the                                                              
wells referred  to by Mayor  Hugo, 41 have  collapsed and  none of                                                              
the sites  have been cleaned.   The wells  were drilled,  then the                                                              
rig  was taken  to  another location,  and  the contaminants  were                                                              
left; all the mud pits are still there as mud pits.                                                                             
                                                                                                                                
1:15:00 PM                                                                                                                    
                                                                                                                                
MR. EDWARDSON  reported that 19  Distant Early Warning  (DEW) Line                                                              
sites were  contaminated.   So far  11 of  them have been  cleaned                                                              
right down  to the chemicals in  the sand.  The  contaminated soil                                                              
was  put into  containers for  removal at  a later  date with  the                                                              
understanding   that   removal    of   those   barrels   was   the                                                              
responsibility of  the United States.   All of this  contamination                                                              
and damage  was done before  statehood, so  the state had  no hand                                                              
in making  this mess.   He  said he concentrated  on cleaning  the                                                              
wells that  were about  to go into  the ocean as  a result  of the                                                              
shoreline  receding from  global warming;  for example, the  beach                                                              
adjacent  to Barrow  has  moved back  one mile  over  the past  50                                                              
years.   Nothing  was done  with the casing  on the  wells and  no                                                              
packing was put  in and even if rubber packing  had been installed                                                              
it would now be  over 70 years old, totally obsolete,  and in need                                                              
of  being taken  care  of.   The  mud  pits  are still  there  and                                                              
animals fall in and still die from the toxins in the soil.                                                                      
                                                                                                                                
1:17:21 PM                                                                                                                    
                                                                                                                                
MR. EDWARDSON  noted that of  the wells cleaned  up, approximately                                                              
six were  about to fall  into the ocean.   The well  mentioned [in                                                              
the  2/8/12 hearing]  that  cost  over $16  million  [to plug  and                                                              
abandon] was  less than 50 feet  from the ocean and crude  oil was                                                              
bubbling out of the  ground.  The high cost was  because a rig had                                                              
to be  brought in  and the well  cemented shut.   The  other wells                                                              
have  not been  cleaned.   He said  Umiat  was the  last place  he                                                              
tried to  clean up  while on the  RAB.  The  Umiat dump  was being                                                              
exposed  and it  contained polychlorinated  biphenyls (PCBs)  from                                                              
the  time  when  it  was  legal  to  dump  PCBs.    He  found  368                                                              
transformers in  the Umiat dump, but  only 8 of them  were brought                                                              
out during the cleanup.   Now the dump is in  the Coleville River.                                                              
He reported that  burbot in the Coleville River, a  fish that does                                                              
not move and stays  in place to eat, are so  contaminated that the                                                              
people have  been told not  to eat more than  three a year.   Over                                                              
three years  before the dump  went into  the river, he  and others                                                              
in the  RAB tried to get  it cleaned up,  but the excuse  from the                                                              
federal government  was that there was  no funding.  Now  that the                                                              
dump is in the  Colville River it is scattered from  Umiat all the                                                              
way down the  river and when the  people of Nuiqsut eat  fish they                                                              
are eating PCB, thanks to the federal government.                                                                               
                                                                                                                                
1:19:55 PM                                                                                                                    
                                                                                                                                
MR. EDWARDSON  said that every documenting  paper for what  he has                                                              
mentioned is  in the RAB  files.  He  said he bullied  the federal                                                              
government to clean  up the wells because he has  to live with it,                                                              
as do  his children and grandchildren.   His grandchildren  do not                                                              
know where  it is unsafe  to play.   If the federal  government is                                                              
trying to let  the state clean up  the wells, then the  tribe will                                                              
stand beside  the state  to ensure  that this  is done  because it                                                              
has to be done.   This is his home that has  been contaminated and                                                              
he is glad to  see the committee attempting to clean  it; he urged                                                              
that the job be done.                                                                                                           
                                                                                                                                
MR. EDWARDSON,  in response  to Representative  P. Wilson,  agreed                                                              
to  provide  the committee  with  a  copy  of the  letter  telling                                                              
people not to eat  more than three fish a year.   He said he would                                                              
get  the  letter  from the  [North  Slope  Borough  Department  of                                                              
Wildlife Management]  because they  are the  ones that  tested the                                                              
fish.  He  said that cleaning up  the dump would have  stopped the                                                              
river  from  being  contaminated  and  he  is  not  accepting  the                                                              
federal government's excuse.                                                                                                    
                                                                                                                                
1:21:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER remarked that  Mr. Edwardson's  outrage is                                                              
contagious.   She asked whether  the containers with  contaminated                                                              
soil  from the  cleaned  well  sites on  the  DEW  Line are  still                                                              
there.                                                                                                                          
                                                                                                                                
MR.  EDWARDSON  replied that  some  of  the containers  are  still                                                              
there.  He said  the containers are plastic lined  so the rain and                                                              
snow  cannot get  in and  are stored  in  a place  where they  are                                                              
ready for shipment.   Now, however, a permit cannot  be gotten for                                                              
hauling  out that  contaminated  soil.   The  previous  containers                                                              
went to a  naval site near Seattle.   As mentioned by  Mayor Hugo,                                                              
contamination  has been  done by  both the state  and the  federal                                                              
government.   The utilidor  in Barrow is  laced with  10.5 million                                                              
board   feet   of  pentachlorobiphenyl-treated   wood,   and   the                                                              
contaminant is  now throughout the town.   The U.S. Army  Corps of                                                              
Engineers built the  utilidor and the borough was  the contractor.                                                              
During  construction of  the  utilidor, half  a  dozen women  lost                                                              
their  babies  from  broken  umbilical  cords,  a  habit  of  this                                                              
particular contaminant.   These  people were painting  and cutting                                                              
the wood without  proper protection.  Regarding the  DEW Lines, he                                                              
said  that  through  the  tribal government  he  had  the  federal                                                              
government admitting it was their mess.                                                                                         
                                                                                                                                
1:24:17 PM                                                                                                                    
                                                                                                                                
DAVE  THERIAULT,   Legislative   and  Outreach  Director,   Alaska                                                              
Conservation  Alliance,  offered  his organization's  support  for                                                              
HJR  29  and  thanked the  sponsor  for  bringing  the  resolution                                                              
forward.                                                                                                                        
                                                                                                                                
1:24:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER commented  there  is no  reason to  expect                                                              
that  this  resolution   will  bring  results  from   the  federal                                                              
government.   It  is an  expression of  the legislature's  outrage                                                              
that the  state's lands  are contaminated and  that this  has been                                                              
known for a  long time with little  done to remedy it.   She asked                                                              
whether anything else  might be done to make  this problem broadly                                                              
known and encourage some sort of resolution.                                                                                    
                                                                                                                                
CATHERINE FOERSTER,  Engineering Commissioner, Alaska  Oil and Gas                                                              
Conservation  Commission  (AOGCC),   replied  that  she  has  been                                                              
worrying this problem  since she arrived at AOGCC in  2005 and she                                                              
has finally  decided that the  only thing that  can be done  is to                                                              
embarrass the federal  government in the court  of public opinion.                                                              
The local  BLM folks are  Alaskans too,  she said, and  would like                                                              
to  see  it cleaned  up,  but  their  budget  is only  $1  million                                                              
annually and  that is hardly  enough to  pay for the  Alaska BLM's                                                              
staff  and share  of the  building and  the paperwork  to keep  up                                                              
with the  status of these  wells.  The  Alaska BLM  certainly does                                                              
not get enough  money to plug the  wells.  She said  this needs to                                                              
be    discussed   with    Alaska's    Congressional    Delegation,                                                              
environmental groups,  and others and  noise must be made  to make                                                              
this a priority  that the federal government allocates  budget to.                                                              
Ms. Foerster added  that the local BLM folks have  this issue as a                                                              
high priority with  no money.  Mr. [Ted] Murphy of  the Alaska BLM                                                              
has committed  to collaborate with  AOGCC and she is  meeting with                                                              
him next week to  share data to ensure that everyone  has the same                                                              
data  and same  understanding  of  the status  of  all 136  wells.                                                              
There will  likely also be  an agreement  for a way  forward about                                                              
what to do  next.  She said  she will keep the  committee informed                                                              
as to what is  done; however, the bottom line is  that until there                                                              
is  a budget  for the  Alaska BLM,  the  meetings will  just be  a                                                              
dusting off of furniture.                                                                                                       
                                                                                                                                
1:27:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P. WILSON  inquired whether  this situation  would                                                              
get taken care of if it were in the Lower 48.                                                                                   
                                                                                                                                
MS. FOERSTER  responded that if  this were in  an area that  had a                                                              
larger and  more vocal  population with  easier access  for people                                                              
to see,  it would be  gone.  Alaska's  situation is out  of sight,                                                              
out of  mind except for  the few people who  live out there.   She                                                              
offered her appreciation  for the committee's championing  of this                                                              
effort.                                                                                                                         
                                                                                                                                
REPRESENTATIVE P.  WILSON offered her  belief that if more  of the                                                              
organizations concerned  about contamination  were to jump  on the                                                              
bandwagon there would be more results.                                                                                          
                                                                                                                                
MS.  FOERSTER  agreed and  said  that  if Greenpeace,  the  Sierra                                                              
Club, and  other bigger  organizations with  lobbying emphasis  in                                                              
Washington,  DC, were  to  put their  horsepower  behind this  the                                                              
issue would be taken care of.                                                                                                   
                                                                                                                                
1:29:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FOSTER  surmised that if  there are a lot  of wells                                                              
in the Lower 48  that need plugging, Alaska will be  at the end of                                                              
a very long line.   However, he continued surmising,  if there are                                                              
only a  few such  wells perhaps  Alaska would be  next in  line if                                                              
there was some movement.  He asked which scenario is the case.                                                                  
                                                                                                                                
MS.  FOERSTER replied  she does  not  think there  are many  wells                                                              
managed  by the  federal government  in  the Lower  48.   However,                                                              
there may  be some in Montana  and Wyoming and they  probably have                                                              
some of the same  issues as Alaska as far as out  of sight, out of                                                              
mind and a small population that is not influential.                                                                            
                                                                                                                                
REPRESENTATIVE  DICK quipped  that the federal  government  is too                                                              
busy  setting  up  sting operations  for  Amish  farmers  bringing                                                              
unpasteurized  milk across the  Pennsylvania border  and therefore                                                              
does  not have  the  funds  for  something as  "insignificant"  as                                                              
this.                                                                                                                           
                                                                                                                                
1:31:00 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FEIGE closed public testimony on HJR 29.                                                                               
                                                                                                                                
CO-CHAIR  SEATON moved  to report  HJR  29 out  of committee  with                                                              
individual  recommendations  and   the  accompanying  zero  fiscal                                                              
notes.   There being no  objection, HJR  29 was reported  from the                                                              
House Resources Standing Committee.                                                                                             
                                                                                                                                

Document Name Date/Time Subjects
HB276 Potential Frontier Basins Map.pdf HRES 2/17/2012 1:00:00 PM
HB 276
HB276 Frontier Stampede DNR 2.16.12.pdf HRES 2/17/2012 1:00:00 PM
HB 276
CSHB 229 Amendment - Seaton.PDF HRES 2/17/2012 1:00:00 PM
HB 229
HJR 29 Support Letter AK Conservation Alliance.pdf HRES 2/17/2012 1:00:00 PM
HJR 29 BLM Response to HRES.pdf HRES 2/17/2012 1:00:00 PM
HJR29 Fiscal Note - LAA.pdf HRES 2/17/2012 1:00:00 PM